Paraguay’s president has rejected a bill that seeks to recognize cryptocurrency mining as an industrial activity.
Latin American countries are becoming an attractive area for cryptocurrency exchanges and companies. Although Paraguay does not have any oil or gas reserves, it is the world’s fourth largest energy exporter. Although the cheap electricity in the country works in favor of cryptocurrency miners, the regulations on the subject have not been clarified yet.
Veto from Paraguayan President to Cryptocurrency Regulation
Paraguayan president Mario Abdo Benítez vetoed a bill to recognize cryptocurrency mining as an industrial activity. The president thought that mining, high electricity consumption, could hinder the expansion of a sustainable national industry.
The decree stated that crypto mining is capital intensive with low manpower and therefore cannot produce equal added value with other industrial activities. Also, if Paraguay intensifies crypto mining today, it will have to import electricity in the next four years.
According to Senator Fernando Silva Facetti, the law aimed to encourage cryptocurrency mining through the use of excess electricity. However, the Paraguayan government chose to ignore it.
The country’s Senate had already passed a similar law in July. The bill in question has now been rejected by the president of Paraguay.
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